Market capitalization, also known as market cap, is a measure of a company's total value and is calculated by multiplying the number of outstanding shares by the current stock price. It is used as a way to rank companies by size and is often used as a metric for determining a stock's liquidity and potential for growth. Market cap can also be used to compare companies within the same industry, as well as to benchmark a company's performance against the broader stock market. It is important to note that a high market cap does not necessarily indicate a strong financial performance or a good investment opportunity. Additionally, market capitalization also used to evaluate the overall strength of the stock market.

Market capitalisation, calculated by multiplying a company's share price by its outstanding shares, plays a crucial role in evaluating a company's size, stability, and investment potential. Large-cap stocks (high market cap) are typically established, stable companies with lower volatility, making them safer investments. Mid-cap stocks offer a balance of growth potential and moderate risk, while small-cap stocks are high-risk but may provide significant growth opportunities. Market cap also influences index inclusion, liquidity, and investor perception. Additionally, it helps in portfolio diversification by allowing investors to allocate funds across different market segments based on risk appetite. Overall, market capitalisation serves as a key metric for assessing a company's market standing and guiding investment decisions.

Market capitalisation, or market cap, represents the total value of a company's outstanding shares and is calculated by multiplying the share price by the number of shares. It plays a vital role in assessing a company’s size, stability, and investment risk. Companies are typically categorised into large-cap, mid-cap, and small-cap groups. Large-cap firms are considered more stable and less risky, while small-cap companies often offer higher growth potential but with increased volatility.

Market cap helps investors compare companies across sectors and make portfolio allocation decisions. It’s also used in index construction and fund management. However, it doesn’t reflect a company’s total value, as it excludes debt and other financial metrics. Therefore, it’s best used alongside other indicators.